DOGE says it’s cutting nearly half a billion dollars from Kentucky, Indiana health departments

LOUISVILLE, Ky. (WAVE) - New entries on the Department of Government Efficiency’s (DOGE) website show the agency plans on cutting nearly half a billion dollars from state health department grants in Kentucky and Indiana.

According to the website, federal grants worth $80,482,341, $9,798,986, $9,332,952, $8,633,114, $5,999,019, $5,270,574 and $1,549,589 are slated to be cut from the Kentucky State Cabinet for Health and Family Services, and grants worth $262,367,100, $50,662,718, $14,738,869, $10,882,234, $10,697,915, $10,352,840, $7,126,596, $4,741,123, $4,105,448, $2,994,627 and $1,868,495 are slated to be cut from the Indiana State Department of Health. The website says the cuts were announced on March 23, 2025.

The website says the $14,738,869 grant cancellation at the Indiana State Department of Health comes from the U.S. Department of Agriculture, although the allocation came to the local health department. This grant is one of two grant cuts listed with information, saying the grant allowed state and territory governments to purchase local, unprocessed foods from local producers, targeting historically “underserved” farmers, producers, fishers and small businesses.

The food purchased would then be distributed to schools and childcare institutions participating in the national school lunch program or child and adult care food programs.

Another similar grant for $7,126,596 that’s now slated to be cut allowed tribal governments to purchase unprocessed food from underserved farmers for distribution to families in need.

No other grant cuts on the website found by WAVE listed any description for what was being cut.

In his Team Kentucky update on Thursday, Gov. Andy Beshear acknowledged some of the grant cuts.

“We have received notice of grants being cancelled,” Beshear said. “It’s an unlawful cancellation and we’ll challenge it. These are contracts that we have. The contracts can only be terminated for cause, which means somebody did something wrong and they are trying to define cause as the pandemic. That’s not a legal argument.”

Beshear said the grants cancelled could mean the closure of health clinics.

“I am worried about the cuts,” Beshear said. “These are Americans, they have families. They chose to do civil service and now they are being told that their services are no longer needed. Some of them are being told it’s their fault, which is not true.”

Beshear said he was worried that the cuts could have an impact on the state’s response to bird flu as well, especially if the virus begins spreading person to person.

WAVE News reached out to both health departments for comment on Thursday morning, and only the Kentucky Cabinet for Health and Family Services responded, saying the cuts are likely to come from several programs including those the Purple Heart program for veterans, child vaccine distribution, staffing for the 988 hotline, addiction treatment resources and more.

Spokesperson Kendra Steele provided the following statement Friday:

“Team Kentucky is committed to the health and well-being of all Kentuckians, and ensuring every resource is available to help them reach their full human potential. The Cabinet for Health and Family Services has received funding termination notices for multiple COVID-related grants. We have been notified that updated notices are pending with the federal government. We are actively reviewing those we have received and awaiting the updates. So far, the overall potential impact of COVID-related grant cuts to the Cabinet for Health and Family Services is $148.8 Million. Most of the funds go to local health departments across Kentucky and Community Mental Health Centers, as well as other local community partners.”

The news comes on the heels of major cuts to the U.S. Department of Health and Human Services announced Thursday, which suggest as many as 10,000 workers in the federal department are likely to be cut due to downsizing. The U.S. Department of Health and Human Services provides the grant funding to Kentucky and Indiana’s state health agencies.

One cut listed on the website is for a grant worth $13,570,039 at the “IN ST DEPARTMENT OF MENTAL HEALTH.” It’s not clear if this is a cut from the Indiana Department of Mental Health and Addiction, which goes by a slightly different name. Similarly, another $5,256,921 grant is slated to be cut from the “KY ST HUMAN RESOURCES CABINET, OFFICE OF THE SECRETARY,” although WAVE News is unaware of any department by that name.

DOGE has already proposed cutting leases at more than 20 federal facilities in Kentucky and six in Indiana, leading to brief chaos and worry among some that essential government services might be cut off.

However, the DOGE website has been criticized for offering “inflated” or “inaccurate” numbers when computing supposed “savings.” In several instances, developers took down previously inaccurate numbers from the website, without offering any explanation as to why.

In one instance locally, a social security office in Campbellsville, KY was identified by DOGE as a target to be shut down for savings. However, after public backlash, The U.S. Office of Personnel Management updated the owners of the lease telling them that they would rescind their decision to close the office, instead relying on a “partial” closure.

WAVE reached out to the U.S. Department of Health and Human Services media line, but that number appears to have been disconnected.

This is a developing story and may be updated.